Online shopping is revolutionizing how we access and purchase products from international markets. Despite this growth, many consumers remain hesitant to purchase goods from foreign companies due to trust issues, cultural differences, and concerns about unfamiliar products. A new study led by Assistant Professor Ha Kyung Lee from Chungnam National University investigates how global companies can overcome these challenges by simplifying online shopping and highlighting their corporate social responsibility (CSR) efforts. Their paper was made available online on 28th August 2024 and was published in Volume 81 of the Journal of Retailing and Consumer Services on November 1, 2024.
In this study, the researchers analyzed the behavior of 1,033 online shoppers from South Korea and Japan. They found that companies' social contributions—such as supporting environmental or social initiatives—strengthen the positive effect of online purchasability on purchasing frequency. Professor Lee explains, "When consumers find it simple to shop online, they are more likely to purchase global products. In fact, CSR initiatives significantly strengthen this link between online purchasability and purchase frequency."
One of the most surprising findings was the difference in consumer responses between South Korea and Japan. While Japanese consumers, who are generally less active in online shopping than South Koreans, showed a stronger response to CSR. "Japanese consumers, CSR cues likely helped reconcile their positive perceptions of online shopping with their hesitancy to engage, making the influence of social contributions on purchasing behavior stronger in Japan than in South Korea." Says Prof. Lee. This suggests that CSR can help build trust and overcome consumer hesitation, but that the effect of this might be influenced by cultural predispositions.
Businesses can apply these findings by improving usability and transparency while incorporating CSR messaging into their platform. This approach is particularly important in markets where trust in foreign brands is still developing. For companies entering new markets, CSR can act as a strategic tool to boost consumer confidence and overcome cultural or digital barriers.
Looking ahead, the study's findings are likely to have long-term implications. CSR could act as a powerful tool when tailoring strategies to countries with lower online shopping adoption. Prof. Lee concludes, "Over time, CSR could become a standard feature in global e-commerce, helping bridge the digital divide and making online shopping accessible to more people."
